If you are reading the news and thinking the reopening of the Strait of Hormuz ends today’s oil problems, think again. Shipping has started to resume, but normal flows may take weeks or months to recover as markets work through disrupted logistics, damaged infrastructure and depleted inventories.
The Iran conflict disrupted a meaningful share of global oil flows, including production, refining and shipping activity. Even with the Strait moving back toward normal operations, oil markets may remain tight through the summer as traders watch weekly storage data and the pace of supply recovery.
